Question: I’ve followed you, as well as Andrew Tobias, for many years (some good and some very bad years, I might add). I have a retirement account of $750,000. This is good for two people who saved and didn’t overspend through the years. I understand that if I spend 4-5% of the balance each year, it Read more »
How Much Can You Safely Withdraw from Your Portfolio Each Year in Retirement?
For around 20 years, financial advisers and academics have been actively wrestling with the question of the safe withdrawal rate from a portfolio. The seminal article in the field is by William Bengen, entitled “Determining Withdrawal Rates Using Historical Data.” It was published by the Journal of Financial Planning in October 1994 and later chosen Read more »
Lesson 4 – How Much Do You Need to Retire?
There are several factors that will determine how much in investable assets you need to be able to live off of them for life. Fancy software exists to help you with these calculations. All you need to know for planning software to work is how much you’re going to earn each year for the rest Read more »
Lesson 2 – Financial Independence
For many people, financial planning is synonymous with retirement planning. In my view, however, retirement itself is not necessarily a worthy goal. First and foremost, you should find work you love and not be engaged in activities that mainly inspire you to daydream about when you won’t have to be doing them. We’ll talk more Read more »